The Brazilian real went down today after the Finance Minister Guido Mantega said yesterday that the government intends to curb the currency’s gains.
Mantega that the policy makers “have tools to prevent” the appreciation, “but there will be pressure”. This announcement wasn’t different from what the government was telling earlier, but the market participants became more pessimistic about the real as the intention to curb gains was confirmed.
USD/BRL rose to about 1.7800 today as of 11:04 GMT from its opening rate of 1.7890.
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